After 7 years of working in revenue management I share here the bitter truth that most hotel revenue management software is not delivering on what they promise. I would like fully integrated software that can help me simplify all my operations. Perhaps you can get it all from one solution; however, I would be pleased if the following could be achieved:
Indoors or cloud-based?: More important for me is the decision, do I want to go for a local installation or a cloud model.
The cloud model works well for small hotels and startups, as it offers them greater availability, does not require regular software updates, technical support, etc. Pay for what you use, no hidden fees and so on. But data security can be a problem. Although I do not have detailed knowledge of how this provider of software for hotel programs on the cloud provides data security, but it is certainly important for us – the hoteliers.
On the other hand, hotel management software is suitable for hotels that already have an excellent technical support team.
Operational work in the front office: I would definitely like the hotel revenue management software to seamlessly manage my operation in the front office.
PricesA: Something with a reliable algorithm to recommend me a quality price, set a budget and a task, I ask too much?
Booking Information: Can tell me real bookings
Easy to useA: There is no point in installing or hiring software that is difficult for me or my team to use. I need to understand each of its features and be able to run it effectively; rather I should have been able to make the most of it for my hotel. I don’t want to go for one that needs me to constantly consult with textbooks.
Instead, it should be so simple that I will be able to write a tutorial on how to use it. I’m kidding!
Detailed reportingA: It should help me with the data report and save me from pulling the reports manually. My sales and revenue data should be clearly in front of my eyes.
Scalability and customizationA: Setup should be required. In case I need to reconcile it with any of my additional systems or processes, this scalability should be free or less. Hope I make sense.
Data security: As I mentioned above, this one is crucial for me. Of course! I don’t want to share my guests ’data with anyone. What could be worse than losing important business competition data! A complete nightmare!
InvoicingA: I should be able to compile a detailed invoice using the hotel’s revenue management software.
What are the pros and cons of parity rates in a hotel revenue strategy?
Hope you find this helpful.
I am not a fan of parity rates as I believe this is a bad strategy for hotels and leads to a loss of profit for us. But there are only a few benefits:
- Successful distribution of rates by channels: hotels can easily distribute the same prices by channels.
- Evaluate the uniformity between the channels: the customer is not embarrassed and is not skeptical about the site. What’s more, he doesn’t feel cheated, that somewhere else there was a better price and that he / she was cheated.
- Best price: This is an advantage more for OTA than for hotels. Lol … OTA can guarantee the best price.
Unlike France, which withdrew from this rate-parity agreement, we who are already stuck need to focus more on what we can do to maximize our profits, and let it not affect us. I tried to improve my guest experience by improving my services. It returns them to me and I am happy to offer them direct orders.
By the way, think about optimal hotel revenue management with an effective tool.